A Nepali group has urged the Malaysian government to conduct a thorough investigation into allegations of the existence of a new syndicate - after Malaysia proposed 10 criteria in the selection of foreign labour agencies.
The Nepal Association of Foreign Employment Agencies vice-president, Sujit Kumar Shrestha, alleged that so far, more than 40 manpower agencies in the country are believed to have paid around US$6 million (RM28 million) to two individuals, one Malaysian and one Indian.
"After the letter on the 10 criteria went viral, two individuals linked to this syndicate met with a local agency (Nepal), promising to help obtain approval for a fee of around RM3 million.
"We are ready to share evidence and the identity of the Malaysian if the Malaysian government is ready to investigate.
"Despite Nafea's warning, there were around 40 agencies which paid an advance. They met with local agencies at a five-star hotel in Kathmandu," he told Malaysiakini.
Sujit also confirmed that Nafea had made a formal complaint to Nepal's Interim Prime Minister Sushila Karki and to Nepal's Labour, Employment and Social Security Ministry.
Malaysiakini has reached out to individuals implicated in the syndicate.
Previously, Malaysiakini reported that five agencies from Nepal had paid between RM1 million and RM1.5 million to a syndicate that allegedly has "close ties" with individuals who could influence the approval of worker quotas to Malaysia.
Sources also revealed that the proceeds were paid to the account belonging to a certain individual in Mumbai, India.
Controversial conditions
It was also earlier reported that Putrajaya, through the Foreign Ministry, had the 10 criteria for foreign agencies to supply workers to Malaysia.
The Foreign Ministry, through a letter dated Oct 27 and sighted by Malaysiakini, sent letters to source countries (countries eligible to send workers) and requested their respective governments to submit a list of agencies that could meet the requirements by Nov 15.
Among the conditions considered controversial is that agencies wishing to send workers to Malaysia must have experience managing at least 3,000 workers in five years and have placed workers in at least three countries.
Other requirements include the set are the agency must have positive testimonials from at least five international employers, have a large permanent office (929 sq m) that has been operating for at least three years, and have their own training centre.
However, two international associations condemned the Malaysian government's new conditions, describing them as unrealistic, unfair and having the potential to revive "syndicates".
Apart from Nafea, the Bangladesh Association of International Recruiting Agencies described the conditions as "impossible" to meet.
Both associations claimed the conditions were just a ploy to control the market and eliminate new agencies, in addition to attempts by several individuals in Malaysia in trying to revive “syndicates.”
Agencies fear losing deposits
Sujit said that so far, Nafea has only received complaints from 33 companies.
"The other seven still refuse to report it for fear of losing the money that was paid to the syndicate."
Commenting further, Sujit said attempts to control the Nepalese labour market to Malaysia were not new.
"Several local media reports have previously revealed how every medical centre in Nepal has to pay up to five million rupees (RM190,000) to obtain a biometric licence for health screening examinations.
"After strong opposition from Nafea, the Nepalese Parliament at the time only allowed a trial period of six months, but the system continued to be used without official renewal after the period ended.
"As a result, Nepalese workers have had to bear high costs, including biometric test charges and health checks, and some have even been repatriated after failing health tests in Malaysia," he said.
Sujit also said that attempts to control the process of hiring migrant workers were repeated in 2022 - when the syndicate tried to limit the number of agencies sending workers to Malaysia to only 25.
"Even though we foiled this syndicate's efforts, they still forced the workers to pay almost RM13,000 to go to Malaysia.
"If the new system (10 conditions) is continued, the cost will increase further," he said.
Sujit then urged both the Malaysian and Nepalese governments to establish a joint investigation team to investigate cross-border corruption activities.
He also cautioned that a majority of agencies in Nepal are willing to surrender their licences if the Malaysian government insists on a system that would benefit syndicates. - Mkini
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